Norway Oil Fund Shrinks European Assets for Emerging Markets

Norway’s $712 billion oil fund reduced its share of investments in Europe last year as it plowed more money into emerging markets as part of its strategy to boost assets in future growth regions.

The world’s biggest sovereign wealth fund, Norway’s main investment vehicle for its oil revenues, had its second-best year in 2012, recording a gain of 13.4%, or 447 billion Norwegian kroner ($78.7 billion) as it benefited from surging global stock markets.

“The share of the fund that is invested in Europe was reduced during the year to 48% from 53%,” Chief Executive Yngve Slyngstad said in the fund’s annual report. “The proportion will eventually drop to about 40% as we boost investments in other regions, especially in emerging markets.”